Apollo Hospitals Sees Heavy Put Option Activity Amid Mixed Market Signals

Robust Stock Performance Contrasts with Rising Put Interest

On 11 February 2026, Apollo Hospitals (APOLLOHOSP) traded at ₹7,600.5, marking a 5.04% gain on the day and outperforming the Hospital & Healthcare Services sector, which rose 3.08%. The stock has been on a seven-day winning streak, delivering a cumulative return of 9.45% during this period. It opened the day with a gap up of 2.58% and touched an intraday high of ₹7,640, a 5.83% increase from the previous close. Furthermore, the share price remains comfortably above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, underscoring a strong technical uptrend.

Despite these positive price dynamics, the put options market reveals a contrasting narrative, with investors seemingly positioning for potential downside or seeking protection against volatility ahead of the February expiry.

Put Option Activity: Strike Prices and Volumes

The most active put options for Apollo Hospitals are clustered around strike prices of ₹7,400, ₹7,200, ₹7,000, and ₹7,500, all expiring on 24 February 2026. The highest volume was recorded at the ₹7,500 strike, with 3,827 contracts traded, generating a turnover of ₹526.02 lakhs and an open interest of 916 contracts. Close behind, the ₹7,200 strike saw 3,473 contracts traded with a turnover of ₹129.93 lakhs and open interest of 1,198 contracts. The ₹7,000 strike had 2,952 contracts traded, turnover of ₹49.11 lakhs, and the highest open interest among these strikes at 1,215 contracts. The ₹7,400 strike recorded 2,947 contracts traded, turnover of ₹266.15 lakhs, and open interest of 593 contracts.

This concentration of put option activity below the current market price suggests that traders are either hedging existing long positions or speculating on a near-term correction. The significant open interest at the ₹7,000 and ₹7,200 strikes indicates these levels are key support zones in the eyes of option traders.

Market Cap and Mojo Score Context

Apollo Hospitals is a large-cap stock with a market capitalisation of ₹1,03,813 crores. Its current Mojo Score stands at 55.0, reflecting a Hold rating, a downgrade from a Buy rating issued on 9 January 2026. The downgrade signals a more cautious stance from analysts, possibly influenced by the recent surge in put option activity and the potential for volatility in the near term.

Investor Sentiment and Liquidity Considerations

While the stock’s price action has been bullish, delivery volumes tell a different story. On 10 February, delivery volume fell sharply by 43.86% to 1.35 lakh shares compared to the five-day average, indicating a decline in investor participation. This divergence between price gains and falling delivery volumes may reflect short-term speculative interest rather than broad-based buying.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting trade sizes up to ₹5.36 crores based on 2% of the five-day average traded value. This liquidity profile supports active options trading and allows institutional investors to execute hedging strategies efficiently.

Put Options as a Hedge or Bearish Signal?

The surge in put option volumes and open interest at strikes below the current market price can be interpreted in two ways. First, it may represent hedging activity by long investors seeking protection against a potential pullback after a strong rally. Second, it could indicate speculative bearish bets anticipating a correction or increased volatility ahead of the expiry.

Given the stock’s recent outperformance relative to the sector and the broader market, the elevated put activity suggests a cautious market stance. Traders appear to be positioning for a possible retracement towards the ₹7,000–₹7,200 range, which aligns with the strikes showing the highest open interest.

Expiry Patterns and Implications for February 2026

The 24 February expiry is attracting significant attention, with nearly 13,199 put contracts traded across the four key strikes mentioned. The total turnover for these puts exceeds ₹971 lakhs, underscoring the sizeable capital flow into downside protection or bearish speculation.

Expiry week often brings heightened volatility, and the clustering of open interest at these strikes may lead to price pinning or increased price sensitivity around these levels. Market participants will be closely watching how the stock trades as expiry approaches, with the potential for sharp moves if the stock breaches these key strike prices.

Outlook and Investor Takeaways

Investors in Apollo Hospitals should weigh the recent bullish momentum against the rising put option interest, which signals caution among sophisticated market participants. The Hold rating and Mojo Score of 55.0 reflect this balanced view, suggesting that while the stock remains fundamentally strong, near-term volatility risks are elevated.

Traders with long exposure may consider protective strategies such as buying puts or tightening stop-loss levels, especially with the February expiry looming. Conversely, contrarian investors might view the put activity as an opportunity to accumulate on dips, given the stock’s solid sector fundamentals and large-cap status.

Monitoring open interest changes and strike price concentrations in the options market will be crucial for anticipating price movements and managing risk effectively in the coming weeks.

Sector and Market Context

The Hospital & Healthcare Services sector has gained 3.08% recently, supported by steady demand and resilient earnings growth. Apollo Hospitals, as a leader in this space, benefits from these tailwinds but faces valuation pressures after its recent rally. The broader Sensex was largely flat on the day, down 0.01%, highlighting the stock’s relative strength.

Given the mixed signals from price action and options market data, investors should remain vigilant and consider diversified approaches when engaging with Apollo Hospitals shares.

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